Omni Completes Equity Financing

Omni Completes Equity Financing

NEW YORK--Omni Nutraceuticals Inc. (NASDAQ:OMNT) completed an equityfinancing, under which the company will issue up to 4.5 million shares of itsnew convertible preferred stock, which is convertible into an aggregate of 3million common shares and a warrant to purchase up to 775,000 shares of itscommon stock for an aggregate purchase price of $4 million. The transaction alsofeatures the issuance of 222,222 shares of its HealthZone.com e-commerce unit'scommon stock and a warrant to purchase 37,000 HealthZone shares for $5 million.Proceeds from the financing will be used to reduce debt and fund ongoingoperations, according to the company.

The $5 million price for the convertible stock, the HealthZone shares and therespective warrants are payable in two installments, of which the first was a $3million funding completed on Jan. 24, 2000. A second installment, in the amountof $2 million, will be funded subject to satisfaction of certain performancegoals over the next six months. The company reported that it believes thetransaction enables it to satisfy the minimum net worth requirement forcontinued listing on the NASDAQ National Market System.